Kaizen principles

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The KAIZEN Institute specializes on worldwide consulting of companies. Our competencies include consulting, training, bench marking and qualification in the areas of lean management, total productive management, total flow management and total service management.

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Presentation Transcript

Slide 1: 

Kaizen Principles Kaizen Principles Overview www.kaizen.com

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Kaizen Principles Introduction Principles refer to People's Way of Thinking (also called Mindset); These Principles are the starting point for Kaizen (Changing for the Better) and are embedded in all the tools; They form the very foundation on which the Kaizen transformation takes place. KAIZEN® Foundations – Principles

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Kaizen® Foundations : 5 X 3 Principles

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1. Create Customer Value Customer Value = Utility – Price; Utility includes Product and Service Quality; Old Paradigm: Deliver What you Have, Product Out, Only Final Customer, Inspection to Improve ! New Paradigm: Deliver Utility Market In, Next Operation is Customer, Go Upstream to Improve !

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(1-1) Market In “Market in” is customer focus to: factually understand customer’s QCD needs anticipate and understand customer’s unstated wants and needs

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(1-2)The Next Operation Is the Customer My Suppliers I am a Supplier I am a Customer My Customers Information flow Material- or Service-flow Information flow Material- or Service-flow Operation

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Stop MUDA Never pass muda, waste or problems on to the next process: Don't accept Don't make Don't pass on

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(1-3) Upstream Management Find the Problems Good Reject to Customer Final Inspection Work Flow Stream Rework/Scrap 1.

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2. Eliminate Waste Company Value = Price – Cost; Waste Increases Cost and Diminuishes Value; Old Paradigm: Focus on Addition Point Improvement! Function based structure Push based New Paradigm: Focus on deletion System Improvement! Value stream structure Pull based Focus on MUDA Total system optimization Pull Flow Thinking

What is Muda? : 

What is Muda? “Any activity the customer is not prepared to pay for!” Taiichi Ohno

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Value Chain Consumers Suppliers Reduce Lead Time Eliminate Non Value Added activities (2-1) Focus on Muda

The 3 M´s : 

The 3 M´s

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Stresses integration of total system Appreciates all critical factors vs. Understand things in context Value harmony, stability, balance Manage relationships & fit Bring people together in teams Appreciate multiple factors Value system performance above individual performance Create safe environment for change View things in a vacuum Value stimulation, highs and lows, crises Manage events & things independently Separate people & isolate for control Appreciate functional cause & effect only Value individual performance at expense of system Drive with fear, become risk averse Functional Total Systems (2-2)Total System Optimization

Functional vs. Value Stream : 

Functional vs. Value Stream Functional Thinking Versus

Value Stream Organization : 

Value Stream Organization Value Stream Organization is opposed to Functional Organization; Functional Organization divides, isolates, creates waste, conflict, and inefficiency; Value Stream Organization integrates and appreciates all critical factors; There are no isolated autonomous systems--everything affects everything else.

(2-3)Pull Flow Thinking – Push Flow vs. Pull Plow : 

(2-3)Pull Flow Thinking – Push Flow vs. Pull Plow Plants Distribution Centers S S S Suppliers Consumers Batch vs Transport

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3. Engage People Provide Clear Objectives at All Levels Old Paradigm: Involvement of few specialists Command and Control, Blaming/Judging ! New Paradigm: People involvement at all levels Coach and Empower, Develop Leadership ! People Involvement at All Levels, Welcome problems No Blaming

(3-1)People Development: People Involvement at All Levels : 

(3-1)People Development: People Involvement at All Levels Top Management Middle Management Supervisors Employees: Operators, Staff Management Problems and Standards Supervision Problem and Standards Gemba Problems and Standards Innovation Improvement Maintenance Standard Work Development through KAIZEN® action involving everybody Value Stream or Pull Flow Projects; Gemba Kaizen Workshops; 5S and Other Daily Kaizen Activties.

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(3-2)Welcome Problems Where no problem is perceived, there can be no improvement; Problems are a mountain of treasures; People are not problems; Increase people capability to solve problem: make people problem-solvers. The 1st time management gets angry is the last time it will get good data about what´s going on !

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(3-3) NO Blaming Traditional Blaming? Judges after-the-fact Lets “who is wrong” override “what is wrong” Drives people into defensive positions Submerges issues for years Creates crisis orientation

Empowerment/Leadership : 

Empowerment/Leadership Judgmentalism and blaming lead to fear, mistrust, and the misrepresentation of “bad news”. Focusing on the issue or problem, not on the person, creates an open, trusting, communication-rich environment.

People Development: Blaming/Judging vs. Empowerment/Leadership : 

People Development: Blaming/Judging vs. Empowerment/Leadership Top Management Middle Management Standards Operators Innovation Supervisors Improvement Fault-finding; Focus on individual; Ask “Who?”; Zero in on function; Make assumptions; Blame; Control; Inspect/sort. Fact-finding; Focus on process; Ask “Why?”; Look for system issues; Determine needs; Hold accountable; Assist; Improve capability. Blaming/Judging Empowerment/Leadership versus

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4. Go To Gemba The Importance of Gemba; Gemba Gembutsu Attitude; 5S creates a firm foundation Old Paradigm: Conference room meetings Decision based on opinions Work place organization is not important New Paradigm: Go To Gemba/Check Gembutsu! Speak with data Organized Gemba is a foundation Golden rules of Gemba Speak with Data Organized Gemba

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The Importance of Gemba Where the work is done; Where the value is created; Where problems are owned and solved; Where the operators/ office personnel work. Customer expectations (Q.C.D) G e m b a Organisation to support Customer satisfaction (Q.C.D)

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(4 -1 )Golden rules of Gemba 1. When an abnormality occurs, go to Gemba first 2. Check with Gembutsu (machine, material, failures, rejects, unsafe conditions etc.) 3. Take temporary countermeasures on the spot 4. Remove root cause 5. Standardize to prevent trouble

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(4-2)Speak With Data

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(4-3)Organized Gemba-The 5S Campaign Sort out Straighten Standardise Scrub SustainSelf-discipline ContinuousImprovement

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5. Manage the transformation Old Paradigm: Focus on results only Sparodic improvements Hidden Processes/Problems; New Paradigm: Focus on process and results PDCA /SDCA approach Visible Processes/Problems;

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Inconsistent Processes Yield Inconsistent Results Ignoring the process reduces the chances for desired results.

Quality Processes Yield Quality Results : 

Quality Processes Yield Quality Results Ignoring results hides long-term strategy and areas for improvement.

Who’s the Better Shooter? : 

Who’s the Better Shooter? Shooter A = 6 Shooter B = 9 7 5 3 1 A B

TraditionalResults Only Thinking: : 

TraditionalResults Only Thinking: “I don’t care how you do it, just get it done!” Process and Results - Results Only Thinking?

(5- 1)Process and Results : 

(5- 1)Process and Results

Process and Results : 

Process and Results People work on processes; Processes create results; Results cannot be changed; Improve process to get improved results;

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(5-2) SDCA / PDCA Wheels Results Time Process before introduction of standards Process after introduction of standards Process is more stable, deviations smaller After improvement, the process is on a higher level, but not yet stable Stable process on higher level after improvements Data collection & analysis Data collection & analysis Data collection & analysis Data collection & analysis S: Standardize D: Do C: Check A: Act P: Plan D: Do C: Check A: Act

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Process and Results: SDCA - Cycle A Action S Standard C Check D Do Standards are created with the employees (Data users are involved). Carrying out the standard (training, practice, experience). Modify the standard based upon the results from checking the standard. Compare standard with current situation to verify intended use

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(5- 3)Visual Management? Human beings collect information via: 83% the eye 11% the ear 3,5% sense of smell 1,5% sense of touch 1% sense of taste

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What is Visual Management? ...to depict: - Parameters - Trends - Strategic data - etc. …to show and control processes: …to identify and mark: - Hazards - Reference Points - Standards Visual Management is displaying information Visual Management helps us... Target Start Level 1 MUDA 5S Audit Audit Standards Level 2 Level 3 Process-mapping PSS Audit Best in class

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“We cannot hope to solve our most difficult problems with the same thinking that created them.” AlbertEinstein Change thinking- change Environment- change habits – change culture Thank you

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